VAT collection abroad and USA taxes

Debra15
Level 2
Connecticut, United States

VAT collection abroad and USA taxes

So I have asked this question of AIRBNB help personnel and nobody can answer.  They just send me a "prepackaged" answer.    I am an American working in the Bahamas.  I pay USA taxes.  I host my spare bedroom on AIRBNB.   Guests make all payments to me to a USA bank account.  AIRBNB pulls it's fees from that USA Bank Account.  No monies are exchanged in The Bahamas.      In 2017/2018 AIRBNB advised that they would start taking VAT out of the payments from guests.  I don't understand why.  Yes, the property is in The Bahamas but no money is being exchanged here.  No payments are being made here in The Bahamas.    I wanted to understand why and if there is any way to claim back the VAT that they are taking out?

1 Reply 1
Antoinette74
Level 1
Nassau, Bahamas

The Property is in the Bahamas correct? It’s now law that every thing has a VAT tax. like in America we have to pay tax there you have to pay it here but if you are paying twice 🤦🏽‍♀️😮 that’s something that needs to be addressed.